Amplify Energy Announces Regaining of Compliance with NYSE Continued Listing Standards and Full Forgiveness of PPP Loan

Rhea-AI Summary

On July 8, 2021, Amplify Energy Corp. (NYSE: AMPY) announced it regained compliance with NYSE listing standards after previously being notified of non-compliance due to low market capitalization and shareholders’ equity. The company also reported full forgiveness of a $5.5 million Paycheck Protection Program loan, enhancing its balance sheet. As of June 30, 2021, Amplify's net debt stood at approximately $216 million, and it aims to improve free cash flow and leverage ratios, expecting to achieve a less than 1.5x leverage ratio by the end of 2022.

Positive

• Regained compliance with NYSE listing standards.
• Forgiven $5.5 million loan, improving balance sheet.
• Plans to reduce leverage ratio to less than 1.5x by the end of 2022.

Negative

• None.

HOUSTON, July 12, 2021 (GLOBE NEWSWIRE) -- Amplify Energy Corp. (NYSE: AMPY) (“Amplify” or the “Company”) announced today that on July 8, 2021, the Company received notice from the New York Stock Exchange (“NYSE”) that it had regained compliance with the continued listing standards set forth in Item 802.01B of the NYSE Listed Company Manual.

As previously disclosed, on September 4, 2020, Amplify received notice from the NYSE that the Company was not in compliance with NYSE listing standard 802.01B because at such time the Company’s average global market capitalization over a consecutive 30 trading-day period was less than $50 million and, at the same time, its shareholders’ equity was less than $50 million.

In addition, on June 22, 2021, the Company received full forgiveness from the U.S. Small Business Administration of its entire loan under the Paycheck Protection Program, established as part of the Coronavirus Aid, Relief, and Economic Security Act. The forgiveness of the loan extinguishes approximately $5.5 million of debt from the Company’s balance sheet. As of June 30, 2021, Amplify had net debt of approximately $216 million, with $235 million outstanding under the revolving credit facility and $19 million of cash on hand.

Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “Our near-term focus remains on improving our balance sheet and maximizing free cash flow. We expect that the current commodity price environment, coupled with the low capital intensity of our long-lived, low-decline asset base, will deliver strong free cash flow for the remainder of the year and will accelerate in 2022, rapidly improving our leverage ratio to less than 1.5x by the end of 2022.   We believe that our continuous focus on free cash flow generation and the substantial delevering of our balance sheet will provide future optionality to allocate additional capital towards asset reinvestment, accretive transactions, and return of capital initiatives.”

About Amplify Energy

Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploration and production of oil and natural gas properties. Amplify’s operations are focused in Oklahoma, the Rockies, federal waters offshore California, East Texas / North Louisiana, and the Eagle Ford. For more information, visit www.amplifyenergy.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Amplify expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “will,” “would,” “should,” “could,” “expect,” “anticipate,” “plan,” “project,” “intend,” “estimate,” “believe,” “target,” “continue,” “potential,” the negative of such terms or other comparable terminology are intended to identify forward-looking statements. Amplify believes that these statements are based on reasonable assumptions, but such assumptions may prove to be inaccurate. Such statements are also subject to a number of risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Amplify, which may cause Amplify’s actual results to differ materially from those implied or expressed by the forward-looking statements. Please read the Company’s filings with the Securities and Exchange Commission, including “Risk Factors” in its Annual Report on Form 10-K, and if applicable, its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and other public filings and press releases for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. All forward-looking statements speak only as of the date of this press release. All forward-looking statements in this press release are qualified in their entirety by these cautionary statements. Amplify undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

Investor Relations Contacts

Jason McGlynn – Chief Financial Officer
(832) 219-9055
jason.mcglynn@amplifyenergy.com

FAQ

What is the current compliance status of Amplify Energy Corp. with the NYSE?

Amplify Energy Corp. has regained compliance with NYSE listing standards as of July 8, 2021.

How much debt did Amplify Energy Corp. have forgiven?

Amplify Energy Corp. received full forgiveness of a $5.5 million loan under the Paycheck Protection Program.

What is Amplify Energy Corp.'s net debt as of June 30, 2021?

As of June 30, 2021, Amplify Energy Corp. had net debt of approximately $216 million.

What are Amplify Energy Corp.'s plans for its leverage ratio?

Amplify Energy Corp. aims to improve its leverage ratio to less than 1.5x by the end of 2022.